Introduction to the NESCAFÉ Plan

Stefan CanzNestlé Corporate Agriculture

June 2019

A NEW REALITY IN THE WORLD OF COFFEE…

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EVOLVING CONSUMER AWARENESS

COMPETITIVENESS & INNOVATION

FUTURE OF COFFEE THREATENED

• Expectation for brands to act responsibly

• Scrutiny on agricultural practices

• Sustainability becoming the norm, the license to operate

• Demand for traceability and transparency

• New ways of enjoying coffee

• Rapid growth in “new consumer origins”

• Low prices

• Market volatility

• Climate change

• Plant disease

• Competitive crops

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P L A N T S C I E N C E A N D A G R I C U L T U R A L R E S E A R C H

RESPECTING FARMERS RESPECTING COMMUNITIES RESPECTING OUR PLANET

C O M P L I A N C E : L E G A L , P O L I C I E S , Q U A L I T Y , R E S P . S O U R C I N G , O H & S …

Protecting the environment – along the value chain

Helping coffee communities to become more resilient and successful

Improving long term viabilityof coffee farming & quality of coffee

NESCAFÉ Plan strategic platforms

I M P A C T A S S E S S M E N T : M E A S U R E M E N T T O O L S / D A T A M A N A G E M E N T

Farmers Associations / Coops

Gender & Youth / Agripreneurship

Labour

Social / community support

• About 1 Million Farming Partners in total value chain

• 417,000 tonnes of Responsibly Sourced coffee in 2018

• 180 mio coffee plantlets distributed by end 2018

• 5 new Robusta and 3 new Arabica varieties released and made available in 4 countries since 2016.

• Actively working with farmers in 15 countries

• About 300 agronomists/field staff working with farmers

• About 100,000 farmers trained/receiving assistance per year

• 30,000+ farm visits per year

Fundamental research (drought tolerance, nematodes, etc.)

Arabica / Robusta breeding (productivity, quality, disease resistance, drought tolerance)

NESCAFÉ: Global reach and scale

Plant sciences

Focus areas: compliance, agronomy, business skills

Methods: Demo plots, FarmerBusiness Schools, Farm

Ambassadors, field visits, etc…

Farmer Training

Propagation / nursery management

Arabica / Robusta plantlets distribution

Plantlet distribution

Diversification / Intercropping / Water dynamics

Agronomic practices / innovative tools

Agricultural / Environmental Research

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Compliance Impact

• Absence of unacceptable practices• Independent, credible process

➢ Responsibly Sourced coffee

• Continuous improvement• Enabling positive results• Demonstrating positive change

➢ Do what matters where it matters

NESCAFÉ Plan = NESCAFÉ Compliance + NESCAFÉ Impact